don't have to wear a jacket, take a cruise. katie, illinois, mr. o, i'm 15 and heard you say elvis and the beatles were the best. have you ever heard of "one direction"? i've heard about the lads, katie. we'll see if they endure. mark, tampa, florida, mr. o'reilly stay warm in the blizzard, and i will be in the sunshine. call me in august, mark, we'll talk about the sunshine in tampa. and finally shall the factor tip of the day. congratulations to the newest medal of honor recipient army staff sergeant clifton romesha. he fought fiercely against the taliban in afghanistan and killing those who breached the perimeter. and army said he displayed exe extraordinary heroism. and from lake city, california he now lives in north dakota

with his wife and children. if you want more information about the sergeant, please go to the website, cmohs. cmohs.org. factor tip of the day and by the way i'll be on letterman doesn't if you care. that's it for us tonight. please check out the fox news website, which is different from bill o'reilly.com. also, we would like you to spout out about the factor anywhere in the world, o'reilly@foxnews.com. name and town if you wish to opine. word of the day, don't be with mome. the spin stops here, i'm bill o'reilly, we're looking out for you. >> and this is a fox news alert the manhunt for the rogue lapd police officer christopher dorner is on. he could be anywhere, but in the hopes of sparking a lead,

the department is offering a reward for leading to his capture. >> the reward, 1 million dollars. this is the largest local reward ever offered to our knowledge. some ask, why so large? this is an act, and make no mistake about it, of domestic terrorism. >> sean: as you just heard, the other major development out of that press conference as police are now labeling dorner a domestic terrorist and we're learning from police at least 700 tips have come in and the volume of calls have increased since this reward was announced. standing by with the latest on where the hunt for dorner now stands, our very own william la jeunesse. william? >> reporter: well, sean, every cop in southern california has target on their back, a potential victim of christopher dorner is now looking for payback and helps to explain why the city of los angeles and private donors put up a 1 million dollar reward for information that will lead

to his arrest and his conviction. that is why they want this guy stopped very quickly because the danger that he represents the cops, and also 50 lapd officers and their families who are requiring 24 hours around the clock protection as well as the price tag and the overtime is burning through the department budget. >> this is not a bounty, this is a reward for the arrest, nor information that leads to the arrest and conviction of mr. dorner. okay? we do not need any vigilantes out there, bounty hunters, he's a dangerous individual. >> now, federal and local police task force is now going through the 700 clues or leads, possible sightings like this one in san diego, but also, old friends who say he they think they know where he is or where he might be going. now, as for that search up in the san bernardino mountains, that's scaled back and increasingly unlikely that it's hidden in the snow bank there or some cabin up in the

mountains and so police did find a coleman stove, two semi automatic rifles in his abandoned pickup five days ago, today in riverside the d.a. charging dorner with three counts of attempted murder, one count of murder for the firearm and makes him eligible for the death penalty if he's caught alive. in the killing of an officer, mike crane, who is a 34-year-old ex-marine, two tours of duty in the middle east, he leaves behind a wife, a ten-year-old boy, a four-year-old girl. as it is right now, sean, they're seeing two news conferences a day with lapd, one at eleven o'clock in the morning, six o'clock eastern, they're being very open, but not being very detailed in terms of their being scriptive for the evidence they've gathered. they're not telling us they have any idea where this guy is. >> sean: thank you, at the manhunt continues and police fear that dorner could be

anywhere. he we see a frightening trend emerging. thousands have voiced support for his cause and lengthy manifesto with one facebook page posting, reading quote, i support christopher jordan dorner, and that received more than 6,000 likes. now, even more disturbing is the actions of folks like the reverend jesse jackson and a message dear, christopher dorner, i understand your feelings of hurt and pain i make the appeal to stop spreading the pain and hurt and fear and please do not take anymore lives and i'll doo whatever i can contact me through danny blakewell at the l.a.-- or bakewell not to be outton, troubled actor charlie sheen decided to insert himself inside the story and a video plea. >> christopher dorner, this is charlie sheen, you mentioned me in your manifesto, thank you for you kind words, i'm urging you to call me, let's figure out together how to end this thing.

call me, i look forward to talking to you. >> sean: thank you for your kind words, i look forward to talking to you. does anybody think this is helping? let's take a stroll down memory lane. and remember when gabby giffords was killed and and she produced a map, and how abc news brian ross falsely suggested that the colorado killing was by the tea party. and imagine if chris dorner wrote a manifesto expressing the n.r.a., for mitt romney, michele bachmann, imagine if she praised sean hannity, mark levin, the great one . the media would have a field day, and there would be an action to end the career of anybody who was praised by dorner. and now, i understand here, i do not believe for a second

that anybody should be blamed for this rampage, this murder, this madman and what he does. but when you look at liberals in the media pac out there and they choose cover, the double standard here is blinding, because if it's a conservative, they get the blame and that's worth noting here. here with reaction to this frightening trend and insight into the manhunt, former d.c. homicide detective rod wheeler and dennis prayinger. is it a good idea for reverend jackson and charlie sheen, i'm sure they have the best of intentions and the lapd opened up the case again and said this publicly, is this a good idea? >> let's make something very clear, every murderer has grievances, the one who murders his wife, murders his neighbor, holds up a bank. this idea that grievances led to take them seriously. if this catches on, i predict, and i never make predictions, sean. i promise you there will be copycats. oh, i'll get attention if i murder. fantastic, people will take

what i have to say seriously. they don't take me seriously when i'm not a murder, but if i murder enough people will really read what i have to say. it's a very big danger. >> rod? >> i agree with what dennis is saying here. that's really dangerous, now, anybody has a grievance, i'll just, you know, go out and kill people and get the attention i want and my case will be reopened. and i'll have famous people, you know, making appeals to me. >> exactly. >> call me. >> you're right, sean. i know very well the intricacies of a police department and i can honestly feel for christopher dorner and the way he felt he was discriminated against at the police department and i guess that. however, we do have procedures in place to address these types of issues. and for him to resort to violence, let me tell you, mat mutilatilut lute-- martin luther king said violence perpetuates violence. that's what christopher is doing here. i totally condemn what he has done and i definitely hope he gets caught. >> me, too, what about the the

double standard? >> oh, that's the-- i wrote that in my column that that comes out tomorrow. almost exactly what you did, i used a different analogy, imagine somebody who feels he was denied admission to a prestigious college because of affirmative action and nobody listened to him and he really was denied or thinks he was denied admission and better grades than some minority kids and goes and murders the admissions officer and another admissions officer's child and fiance. how much attention would the press give to the grievances in miss manifesto of having been cheated? zero. >> there's the double standard that if he praised conservatives as he did the liberal media. >> we would be responsible for all of those. we're responsible when we have nothing to do with it. and paul of the new york times says that jared loughner, the day it happened he said jared loughner was a product of talk radio and--

>> they've been doing this for years since tim mcveigh, blame talk radio, blame bob grant. i'm not going to do this. >> the silence is deafening and the double standard is more glaring. >> the double standard is glaring and the fact is there should be a total zero tolerance for any violence such as the violence that christopher dorner is doing here, no matter who the person is and what their political persuasion is, the tolerance level should be totally at zero and this person does not need to be on the street. >> good to see you both and appreciate you being with us. coming up tonight. he is still one of the countless americans out of work and his story is unlike anyone else's on the planet. why? because he's the navy seal who fired the shot that killed osama bin laden we'll talk to the person who spoke to this great american hero who says he's been forgotten by our government. but first. >> i don't think that we should allow brennan to go

forward for the cia directorship, hagel to be confirmed to secretary of defense until the white house gives us an accounting. >> sean: will benghazi block some of obama's cabinet nominees? we'll tuck about thatten the menendez scandal and more. and a special note, after the president's state of the union. that's here and don't miss power analysis. ♪

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>> now ever since the benghazi terror attack in september that killed the u.s. ambassador and three other americans, lawmakers have been trying to find out exactly what the president was doing that night and lindsey graham says he means business to get that answer and if he doesn't get the answers soon, he's prepared to take action. watch this. >> i don't think we should allow brennan to go forward for the cia directorship, hagel to be confirmed to the secretary of defense until the white house gives us an accounting. did the president ever pick up the phone and call anyone in the government to help these folks. what did the president do? we know he talked to the israeli prime minister from 8 to 9 on september 11th about a dustup of a democratic platform and the fact he didn't meet the prime minister of israel when he came to new york to visit the u.n., but that's not related to libya.

what did he do that night. that's not unfair shall the families need to know and the american people need to know. >> i'm not sure i understand. what do you plan to do if they don't give you an answer, are you going to put a hold on these two nominations? >> yes, yes, i'm going to ask my colleagues just like they did with john bolton, joe biden said no confirmation without information. no confirmation without information. of course the white house pushed back earlier today saying they've answered the necessary questions. oh, really? join me with reaction, best selling author, ann coulter. no they didn't. they didn't tell us what obama was doing. and panetta revealed they didn't talk for eight hours while this whole thing was going on. >> right, right, and-- >> go ahead. >> it it can be important for a president to oversee something like this. i don't know if you remember, but it was directly reagan ordering the invasion of granada and advised against it, he said no, i don't care,

there are americans there, we're going in and followed it up saying, don't worry you can always trust the american people. and this is new information, now. i mean, on one hand it kind of depresses me to keep going through what a shocking outrage benghazi was because anyone who cared knew about it before the election and still obama was reelected. on the other hand, this is new information, the media was desperately trying to make sure obama got reelected. you know, maybe they wouldn't cover this now. i think whenever you talk about benghazi, it would be useful to play a little clip of hillary and susan rice claiming it was this american-- egyptian-american film maker out here in l.a. and some siller trailer he put online. they lie about this and an american is killed, eight hours go by and now we find out from the outgoing defense secretary that obama didn't talk to him again. it really is so much more shocking than anything that

happened in the bush administration. >> all right, so, then here is the next logical question because between record debt, record deficits and imperial president shredding the constitution, doesn't seem to care, dividing the country any way he can, then before, during and after they screwed up this thing royally and they're lying about it. how come he gets away with it? what do republicans need to do to force the issue more or has the american public just checked out? >> well, i hope especially conservatives haven't gotten demoralized and checked out because there are issues that we win on. i mean, that's why i say, this is always kind of depressing to talk about obama's cabinet nominee and people who care knew about before the election, but i think we're winning on guns, i think, i think conservatives are going to win just as they did with john mccain on amnesty for illegals, but not if they're too demoralized to call their congressman and write their senators, we're probably not going to like obama's cabinet

nominees over the next few years. we still have 2014 and republicans who hold the house and we may pick up the senate. but don't be demoralized republicans, and it's curious how the gun debate started and this time it's different, we're pushing gun control and a few weeks go by and it seems to have kind of petered out. same thing with amnesty. >> sean: and he's a -- he's a pediatric neuro surgeon, and he was the guy that confronted obama over medical savings accounts, the debt, the deficit and i'm watching his speech and then i interviewed him and i'm thinking why don't republicans say what he's saying? because it's common sense. >> right. >> sean: it's appealing. it resonates. >> right, and-- >> why is he saying these things? >> it was magnificent and you say he confronted obama over these things. it wasn't confrontational, it was pure common sense and many

wonderful pair parabals. >> sean: he may be your new governor christie. >> and i agree with him we need more doctors and fewer lawyers in congress. >> sean: and you saw that as a lawyer, which is interesting. i think from a pure-- i don't want to hear, obama won the election, that's over. i just want tactical, strategic battles that are taking place. i don't think this is hard. they've got to be the party that will balance the budget, secure the border, they're going to be the party that will bring us to energy independence. these weren't complicated things, save social security. >> and one thing that i -- i think it one thing that would help is just recognize that for some reason obama is personally appealing. you don't see it, but he is charming, people like him. that's not transferrable to joe biden, that's not transferrable to hillary clinton. when you take it down issue by issue, like on guns, like on

amnesty. like on raising taxes, the size of government, the deficit. that's where republicans win and that's what we should be talking about. >> all right. if they stick to a very simple agenda do you stick with those who say maybe republicans stay off the social issues or if you talk about it. >> no. >> sean: got to run for office, have an answer for abortion. i mean, that's, that's fair. >> no, i mean, what was so upsetting to pro lifers like me about aiken and murdoch mulling about what should happen to a mawoman in the case of rape and all the hard work done by intelligent pro-lifers winning issue after issue and raising partial term abortion and parental-- and we want to save the 99% of babies not the result of rape, and we'd like the death

penalty, but supreme court should no on that on criminal issues mentally ill and women concealed to carry and protect themselves. not granting amnesty for illegal aliens, that's where republicans win, not on look what obama did a couple of years ago. >> sean: ann coulter, good to see you. we need the three legs of that stool as reagan said. >> thank you. >> sean: coming up-- >> it's almost a false argument to say that we have a spending problem. >> sean: 16 trillion dollars in debt, a rejected 2013 budget deficit and nearly a trillion dollars, nancy pelosi wants you to believe she's thrifty with your money? charlie rangel coming up next. ol if we took the nissan altima and reimagined nearly everything in it? gave it greater horsepower and class-leading 38 mpg highway... advanced headlights... and zero gravity seats? yeah, that would be cool. introducing the completely reimagined nissan altima.

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>> and welcome back to "hannity" with the state of the union now less than 24 hours away. they seem to be in panic mode and some are in complete denial. take, for example, nancy pelosi who said on fox news sunday that the country spending was, well, this. >> so, it is almost a false argument to say we have a spending problem. we have a budget deficit problem that we have to address. >> sean: seriously? now more than 16 trillion dollars in debt doesn't scream a spending problem, i don't know what does. surprisingly earlier today

when asked about pelosi's absurd denial. jay carney had no he choice, but to completely contradict her. watch this. >> house minority leader nancy pelosi one of the sunday broadcasts, referring to the sequester on the future of the united states and talking about education and scientific research it's almost a false wrong that we have a spending problem. does the president think we have a spending problem. >> i think this is a little bit of deja vu here, of course the president believes we have a spending problem. >> sean: at least carney admits it. joining me now to explain why the dismal economic state is charlie rangel. how are you. >> doing well, doing well. >> sean: do you agree with pelosi or carney. >> you have a budget problem and you have 16.4 trillion dollars in debt, it seems to me, you've got to raise some money and cut back some spending, so, you've got to have both, there's no question. >> sean: and raised taxes

you've got at that part and now it's time to cut. >> no, i think that we really have to look at this to see whether or not this revenue is out there, in tax cuts out there. there's a trillion dollars in the tax code, if you're looking for a tax reform, then you'll be raising revenue. by the same token, i think we have to look at everything that's on board and i think you believe that, too. >> sean: you're in new york, how much do these evil rich people that the president always lectures they're not paying their fair share and they got to pay their fair share. no, hang on. out of every dollar they make, those terribly rich people, how much should they be able to keep out of every dollar they make? >> i don't think that we are talking about a class war which you want to lend this to. what we're talking about whether or not the top 1% should have been entitled to a continuation-- >> just raise the taxes. >> we're taking care of that. when we talk about corporate tax, we have to reduce the corporate tax and you can only do it-- >> yes, and--

>> i was trying to do that myself. but in order to do it, you have to get rid of those tax cuts that are not, no longer necessary, those so-called incentives. >> you're really good, but you did not answer my question, mr. charlie rangel, sir. >> let's try it again. >> out of every dollar, every one of those rich people in new york make, how much should they be able to keep? >> depends what the tax rates are, that's what they're trying to do. and look, if you make yourse yourself, 6, 7 million dollars a year, i'm not going to tell you that you should-- because you do a lot of charity work. >> sean: and of cents of every dollar. >> it's ridiculous. >> sean: if you live in new york, that's what you pay. >> i don't think we're here to define what the tax code is going to be. >> sean: that's the reality, what it is now. >> no, no, no. >> sean: yeah, yeah. >> if you really take a look at the rich people that we have in this country, most of them don't pay any taxes. >> sean: okay, i pay 60 cents

of every dollar. >> well, that means that you need yourself are going to-- >> and charlie, if i use your accountant i'd be on the verge of being in trouble in congress. >> you're not really talking about individual tax rates. what you talked about is tax reform and that's something that we need to do. i don't think that anyone, including you, challenges that. >> sean: let me ask you this: you said about barack obama and the lack of diversity that he has, you said it's embarrassing as hell. what did you mean? >> there was a picture that they had in the new york times, i think, and it excluded the one black person that was appointed by him and i meant that it was-- mitt romney had the same type of picture and i said that there was no diversity in the picture and that that picture, the next day nor one came out and we saw that there was a lady standing up in the room. >> sean: just one. they let her in the club.

maybe he needs miatt romney's binders so he could hire the women. >> i don't know if he had a chance to use if, if you do have it send it to the white house. >> sean: your friend menendez speaking in the new york times, what they said in an opinion piece about menendez, instead of trying to protemenen, harry reid needs to remove the gavel. when the new york times is raising questions about his fitness to serve in light of, you know the allegations out there. what does at that tell you? that tells me that there's a problem. >> it tells me there's a problem with the newspapers. i don't know whether or not the new york times, and members of the senate unless there's something in the constitution i overlooked. >> sean: let me ask you a question about you. here you are, the head of the powerful house ways and means committee. you guys are in charge of writing tax law. and then all of these ethics issues comes out on you, and taxes.

seriously, why did you allow that to happen knowing you spent all these years in congress and that that was going to hurt your reputation, why didn't you just pay the bill? >> actually, that case is not really over. and according to my counsel, jay goldberg, i don't think it would be proper for me he to discuss it further on your show, but i tell you one thing, when it is over, you'll be the first one to get the answers. >> sean: that's a promise? >> that's a promise. >> sean: i'll take it. charles rangel, good to see you. >> good to be back. and governor gavin newsome is going to join me in the studio with the search for the former lapd officer christopher dorner, he's the navy seal who killed usama bin laden and he's without a job and without insurance and living in fear of retaliation. the reporter who met and profiled this great american hero will join us when we return and log on to hannity live, share your thoughts on

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>> after the brave men of seal team six took out usama bin laden, the obama administration took a lot of credit, but it looks increasingly that they've abandoned the great americans who carried out the position. he is squire magazine profiles the member of seal team six who killed usama bin laden, and refers to him as the shooter, the man who killed usama bin laden is screwed. here is why. even though he took out the world's most wanted terrorist, he feels retaliation and feels the country he fought to protect and serve has abandoned him and the shooter will discover soon enough when he leaves after 16 years from the navy, his body filled with

scar tissue, arthritis, what he gets, nothing, no protection for himself or his family and hard to comprehend how that's possible. earlier today the navy responded to the article and statement reads in part, we take seriously the safety and security of our people and sailors making transition to civilian life. without more information about this particular case, it would be difficult to determine the degree to which our transition program succeeded. now, joining me now with reaction is the man who spent all the time with the shooter and wrote the article forest squire magazine. phil bronstein is here. >> thank you. >> sean: and in one part i've got to thank you and another part ruined my day. and i devoured this, it was fascinating. tell us about the shooter. >> one of the things he would probably like me to correct is the notion that it's about

him. i think while it's his story and he humanizes these guys and of' read a lot of books by seals about seals and they're pretty matter of fact and portray them as rough people, which they are, they're also human beings. it's hard to do things for them and help them and support them and particularly when they get out of the service and don't see them as human beings. he was motivated by the idea of us presenting him in the story as a real human being. >> sean: i was interested when he actually was on the mission and they were about to get there. i think about an hour away, and he remembered george bush and he quoted in his mind over and over again george bush and what he said about the terrorist. >> defending freedom. >> sean: defending freedom. >> and he did say, he kind of 2000 and back. and a number of-- >> and that's mental toughness, right. >> that's mental toughness, focus and the point of it is he actually -- then he gets no benefits in terms of pension, because if you quit before your 20 years you get zero

unlike private enterprise where their systems. >> sean: you get-- >> for years served, but he gets -- there's actually insurance available through the va only for him not for his family, five years of free insurance, president bush signed that in law. in 2008, but he didn't know about it because part of the problem and he didn't get it so part of the problem, there are some services out there, but the dod is not very good at communicating that to the vets. >> sean: the advice he got, if you go on an interview wear a tie and don't throw up on the interview table, pretty much. >> keep in mind 200,000 vets coming out every year and we have done a lot of reporting about the fact, for instance, it takes nine months for a va disability claim to be adjudicated which is ridiculous. if you're suffering. 200,000 vets come out a year and it's very hard to say you're going to focus on a few dozen elite troops, as elite

and important as they are, and more important as they're going to be as we fight in the asymmetrical battle. >> sean: why did he leave with just about three and a half years to go? why didn't he stick it out. >> you read a series of ailments he's got. jump out of planes. >> sean: a desk job? >> they don't want a desk job and don't want to carry a gun and use it. they're tired of doing that. they say it's not an adrenalin rush for me anymore, it doesn't make me excite today do this, i want to do something else. >> sean: that's the reason he said he left. there are some things i learned about the killing that i didn't know in your article. he hit, popped him what, twice in the head. >> three times forehead, twice as he was standing and-- >> described in detail. i wanted the pictures to come out and he described something we maybe don't want to see. >> a lawsuit was filed to see the pictures, gruesome you

want me to describe it. >> sean: yeah. >> when you shoot someone in the forehead the entire head was split like a v and watched him take his last breath and tongue was out and exhailing his last breath and he watched it and thought this is either the worst thing i've ever done or the best thing i've ever done. >> sean: one thing i've never heard before is that other guys after he was dead, shot him. and for all the talk, i wished he hadn't said that, but as i suspect that some liberals might jump on that, doesn't bother me in the least, i'm proud of these guys and appreciative what they've done for us. >> what the shooter says he doesn't talk about that specifically, but obviously the body when they examined it at bagram air base had a number of wounds in addition to the head. what he talks about is how he would have, if he had come in >> sean: he would have done it. >> i don't care if he was dead as fried chicken, i would have shot him again. >> sean: it's easy for people in the comfort of the united states say we shouldn't have have enhanced interrogation

and i interviewed jose rodriguez so you know he was there during the the waterboarding of three people. without that intel we wouldn't have found the courier, wouldn't have found bin laden. i'm glad we did it and now we have a president so outspoken against it, and supporting drone strikes against americans, that's surprising. >> that's a policy issue and i was very focused on this guy, who, by the way, i have to say said there was a moment when president obama said let's go and we're not going to get my guys get taken captive by the pakistanis, and he was very complimentary, not a lot of seals said that, but he said that. >> sean: he said the initial plan was that joe biden would go to the pakistanis and negotiate their release if there was a conflict with the outstanding military. >> that was an option that they would surrender, he was thinking to himself we'll steal some cars and-- when the helo crashed we'll

steel cars and go to islamabad. >> sean: what did you learn about him? you spent a lot of time with him. what would you like people to know about this guy. >> he's not at all helpless, an extraordinary guy it's not all about him. he has not capital lied ized by raid. 's he not written a book, he's struggling in the sense that a lot of guys are struggling, not getting enough transition help hilariously funny tough guy. >> sean: i like the idea of vesting these guys into pensions earlier, ten years, whatever it is. >> you know, i talked to some ceo's on the east and west coast and talking about a transition program that civilians that-- that civilians signed would be responsible for help these guys transition into regular life, civilian life. >> sean: everyone's got to read it, a great story. >> thank you, appreciate it. >> sean: coming up, it sounds like a hollywood movie, but for californians, the manhunt

for the former lapd officer is serious. and gavin newsome is here as my guest in the studio as the latest on the search for christopher dorner continues. ♪ [ slap! ] [ slap! slap! slap! slap! ] ow! ow! [ male announcer ] your favorite foods fighting you? fight back fast with tums. calcium-rich tums starts working so fast you'll forget you had heartburn. ♪ tum tum tum tum tums all the things we love about sunday meals into each of her pot pies. like tender white meat chicken and vegetables in a golden flaky crust that's made from scratch. marie callender's pot pies. it's time to savor.

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>> the manhunt for former lapd officer christopher dorner, who is now called a

domestic terrorist continues. now, the scale of the search is growing day by day over multiple jurisdictions and multiple states and the latest and the preview of the brand new book, citizenville how to make the town square original and the lt. governor great state of california, gavin newsom. it's scary. >> a police officer, expolice officer targeting police officers and their families, protective custody. one officer gunned down in riverside, people moved out of their homes and the million dollar reward seems to be doing its work and not just l.a. city, the county has put up a few hundred thousand, and riverside few hundred thousand, and now hundreds of tips and you have to have the investigators to follow-up on them.

>> sean: mayor of san francisco and governor of the great state of california and wait a minute, with the stories you have to tell we're talking digital and i'm thinking, he's thinking one day he's going to run for president. that's how i read this. >> this is important stuff and it's not talked about. we use the total technology to get elected and turning on voices. we get their vote and obviously people to volunteer and obviously get their money and once that election is over, we turn down the dial and the whole point is to reconcile that. this is a new digital divide between our governing institutions and the private sector, the world we're living in is no longer relevant to the government that we have today. so i'm arguing for a more efficient, more effective government and a shifting relationship with citizens, taxpayers, and the government itself. look, i want to streamline government and no other state other than california wants to do that. >> sean: and california's

debt. >> a couple of things, look, two years ago, governor brown came into office with a four-year budget projection, 21 billion dollars a year to of a shortfall and we put a balance together and projects modest surpluses. what you're talking about is a mountain and wall of debt. and that debt we also are projecting to drop down to 35 billion to four over the next several years. >> sean: but your total debt is 427 million dollars. >> that's unfunded health care and pension liabilities and that's not dissimilar to other, we it did the first round of pension reform last year and we'll have to do more. >> sean: add the taxes up. federal income taxes 40% pan now voted in a state tax of 13 1/2%. >> yeah. >> sean: 4% obamacare tax and that's 40, 53, 57 1/2. >> yep. >> sean: and then the other things. so the average quote, rich person is paying, as phil mickelson said 62 cents out of every dollar. and the question, is that fair

or way too much? >> there's no question we have the highest taxes now in the united states of america. >> sean: is it fair? >> let me just suggest two things, one, we have to reform our tax code. there's no doubt. it's not just the income taxes, it's the capital gains taxes and corporate taxes and now the sales tax is among the highest in the nation. >> sean: and when you die you pay more. >> the effective tax rate is a lot lower. that said i do think our tax rates in california are not competitive. we have to dig ourselves out of the extraordinary hole with two-thirds cuts and modest five year tax increase don't get me wrong is not insignificant for those --. >> sean: want to make a bet right now. i bet that tax never goes away. >> i don't suggest you're wrong. >> not going away. >> california is back and the bond rating as bad-- >> it will go up. we're turning the corner on that debt and turning the corner on the fiscal discipline. for a progressive state you don't have to be profligate to be progressive.

>> sean: california and where i live in new york, this is what happens with liberal socialist policies. you now are taking 62 cents at least of every dollar that somebody makes out there, on top of that, you still have 427 billion dollars in debt. that's just california debt, you have 4 million people on food stamps. 2 million people unemployed, a population of 37 million people. it's -- you're chasing people to vegas. you're saying, please go to arizona. >> look, we still have more scientists and-- >> not you by the way. >> and i've covered the private sector, 15 businesses, about a thousand employees, i'm a job creator and not just preaching here. california is a central place to do business, and we do have two californias, a west coastal california and an inland california marin county 5.5% unemployment. a county outside of l.a., imperial county, 25.5%. we need a growth plan and a

jobs plan the number one issue in the state and there are good ideas in the book, but you're definitely running for president and thinking about it. >> i'm trying to-- by the way-- >> you wouldn't say one controversial thing in in book. >> controversy, i'm a democrat saying good things about eric cantor and darrell issa. >> sean: thinking long-term. >> and ronald reagan and mention the tea party in a not so unfavorable-- >> appreciate it. wow, ouch. and stick it to hannity as i'm leaving. >> coming up next-- >> my behavior was very irrational and i apologized. >> sean: she landed herself behind bars after flipping off and cursing at a miami judge. as you heard she's now apologizing and sucking up to the judge. is the judge going to reverse his ruling? we'll hear directly from him when we return. or settling f? stop compromising! new vidal sassoon pro series. care and styling from the original salon genius, created to let you have it all at an affordable price.

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a miami woman and the judge caught on tape did not end up the way that penelope soto, going face-to-face with the tenacious circuit court judge and her apologizing to him. whether his apology was accepted, other apology was accepted, here is the original exchange. >> oh. >> are you serious? >> i am serious, adios. >> adios, (bleep). >> come back again. come back again. bring her back again. >> oh. >> what's up. >> i believe i heard you saying to-- >> yes, i did, i'm not going to-- >> and did you say (bleep) me. >> actually-- >> did you say that. >> yes. >> and give you 30 days in the county jail. >> sean: great philosopher